The Reserve Bank of Australia has stated that climate change presents significant risks and opportunities for Australia’s economy. Deputy governor of the RBA Guy Debelle said that, traditionally, climate change was only seen to impact agriculture, but it was no longer the case. “Agriculture is the prism through which we have historically thought about the effect of climate on the economy.
“Today, climate change presents significant risks and opportunities for a broader part of the economy than agriculture, though the impact on agriculture continues to be significant,” he said. Mr Debelle said that there was bound to be significant volatility around the outcome of climate change and the economy would need to adapt to that. “The trend changes [for climate change] aren’t likely to be smooth. There is likely to be volatility around the trend, with the potential for damaging outcomes from spikes above the trend,” he said.
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